The company was not so foolish as to take up arms in defence of its flimsy rights. Its policy was to hinder human encroachment as long as possible, and then bow to the inevitable. By 1835 its spheres of influence had sadly dwindled, and its titles to territorial possession were becoming more and more shadowy. The governor and his committee perceived the necessity for doing something to arrest the decay of their power and prestige. So it was the strange fate of the Red River colony to be bought back by the Hudson’s Bay Company, for a sum of £84,000, from the heirs of Lord Selkirk. In that colony the fur traders now established an autocratic government that aimed primarily at the vigorous suppression of all private trade in pelts. It was not long before the settlers were gasping for freedom. Vainly they demanded the representative government that had been secured under the American flag by their comrades in Minnesota. At the opening of the second half of the nineteenth century, indeed, the fate of the Red River settlement—the pioneer colony of the West—hung in the balance. Would it, like Oregon, join the Union? In that critical situation, an independent element of unrest was provided by the growing discontent of the Half-Breeds. For long years past, the fur traders—and more particularly the French Nor’-Westers—had intermarried with the Indians, and brought into existence that numerous, pathetic people, who inherited the conflicting traditions of two races. In view of growing unrest in the Red River settlement, the Home Government instituted a Parliamentary inquiry into the affairs of the Hudson’s Bay Company. That inquiry seemed to effect nothing. But, hey presto! a change came over the position immediately afterwards. In 1863 a syndicate of capitalists, known as the International Financial Association, bought up the Hudson’s Bay Company for £1,500,000, and turned over the concern to new shareholders in a new Hudson’s Bay Company on a footing of increased capital. The tension was relieved; for public interests were represented by a wisely-controlled force working in the background. With the confederation in 1867 of Canada East, Canada West, Nova Scotia and New Brunswick, the creation of the Dominion of Canada commenced. The newly established Federal Government promptly arrived at an understanding whereby the Hudson’s Bay Company relinquished any rights of territorial administration it may anywhere have possessed; and in 1870 the Red River colony became the Province of Manitoba and an invaluable part of the Dominion of Canada.